The Rental Mandate is the Contract under which the Rental Agency can Claim Entitlement to Payment.
NO Mandate = NO Entitlement to Payment
What is a Rental Mandate?
The Rental Mandate is the contract between the landlord or property owner and the rental agency represented by the Principal – not between the landlord and individual agents.
In terms of the Rental Mandate, the Landlord engages the agency to carry out certain duties on their behalf in exchange for an agreed fee.
The Rental Mandate sets out (or should set out clearly) the duties that the agency agrees to perform – there usually include the landlord’s duties and obligations under the Rental Housing Act (RHA), as well as other duties that are not directly related to the Landlord’s duties under the RHA, e.g. advertising and showing available rental properties to prospective tenants, evaluating tenant applications, collecting rent, implementing agreed arrears management procedures and corrective actions, etc.
Can you explain your obligations under your Rental Mandate clearly to Prospective Landlord Clients?
Every rental agent need to know and full understand the specific rental mandate their agency operates under in detail.
Why? So you can explain to the landlord exactly what services you DO and (just as importantly) DON’T provide.
What services are NOT included in the mandate are honestly just as important as what IS included. I have come across many instances during my career where Landlord/s seem to think that the Rental Agent is their private, personal assistant that is obliged to carry out any instructions from them that relate to their rental property.
Of course, this is not the case, which is why it is so important to go through the rental mandate in detail with the Landlord BEFORE it is signed to ensure that everyone is on the same page.
Just like any contract, both the landlord and the agency have rights and obligations under the mandate.
In addition to performing duties listed in the mandate, there’s another important aspect of this contract – the landlord is appointing the agency for their specialised knowledge and experience in the field of residential property rentals.
This is important to note as often agents use ‘the landlord said so’ or ‘the landlord agreed’ when there’s a query or a problem, BUT the agent/agency should be advising the landlord NOT taking instructions from the landlord without advising them of their rights and obligations and what the right thing is to do as well as their risks
The Rental Mandate and the Consumer Protection Act
In terms of the rental mandate, the rental agency is the supplier of services and the landlord is the consumer.
It’s critical to understand this clearly in order to understand the operation of the Consumer Protection Act (CPA) as it pertains to the mandate.
What does that mean?
Well, if the mandate is for a fixed term, then the terms of the CPA apply, including, not limited to:
- The landlord can cancel a fixed term mandate at any point in time and for any reason whatsoever by simply giving the rental agency 20 business days notice of cancellation. Of course the agency may impose a ‘reasonable cancellation penalty’, but that’s a discussion for another time
- If the landlord breaches and of the terms of the rental mandate, the agency can issue the landlord with a notice of breach (i.e. Letter of Demand) giving them 20 business days to remedy their breach, failing which the agency can cancel the mandate.
Where do individual Agents fit into the Landlord-Agency relationship?
Individuals (rental agents) are employed by the rental agency to perform the day to day activities on the agency’s behalf in terms of their contract of employment.
Amongst their other obligations, the agents are responsible for fulfilling the agency’s obligations under the rental mandate
So, the agency enters into a contract with the landlord and then employs agents to carry out their obligations.
The agency gets paid by the landlord for carrying out the agreed obligations and the rental agent usually gets paid a portion of the income the company receives, or as stipulated in their employment agreement.
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Shaun’s Training is Rated *5 Stars* by Rental Professionals!
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Thank you, I am learning more and more every session, very informative, I will implement the forms for my future new listings. I gain knowledge every session. Thank you once again
THANKS SHAUN, SOME GOOD DIRECTION AND IDEAS SHARED.
Very informative and professional way to conduct our business as agents. Will implement the forms to improve my professionalism.
I found the training really worthwhile even for people that have been in the industry for awhile.
Thank you for all the hard work you have put in to be able to share this with you fellow colleagues.
Thank you Shaun for a shortened brief of the RHA. It is easier to hear and understand what all the legal acts are about in the RHA instead of having to read pages of rules and acts which doesn't really make 100% but you managed to explain this all in a nutshell which was so much easier to understand. Thank you once again Regards Belinda Zeelie
Very Helpful and Informative.. I need to be more thorough on my Price Counselling and the training showed how I could do this on a weekly basis.
I found this training brilliant. It was incredibly helpful to have the actual clauses in the act referred to and showed on screen. this helped bring the seriousness home. It also gave us some brilliant ideas with restructuring our department and policies on doing renewals correctly. Can't wait until the next one!
Shaun has a huge knowledge of rentals and the renewal presentation was very informative and helpful.
Well presented with Q&A time to.
Well presented and informative. Always up to date
excellent training, thank you Shaun, look forward to more!
Very informative. I especially liked that you emphasised the need to verify the person's identity not only get a copy of the ID document.
The session well structured, thorough and even though it was long Shaun's presentation style made it lighthearted and enjoyable. The time flew by.
Well this was a refreshing training session, some fun, and work all together. A long session, but then when one needs to cover the whole process, this will take time.
A session that every single estate agent who deals with rentals should do, in fact it should be compulsory.
Thank you Shaun and thank you Xpello team for making this possible.
Here’s a sample of what’s available . . .
- WEBINAR SERIES: ONBOARDING NEW LANDLORD CLIENTSR399.00
- WEBINAR-ON-DEMAND #13: RENTAL MANAGEMENT MANDATES – Using the Service Level Agreement Approach to Stand Out from the Crowd!R249.00
- WEBINAR-ON-DEMAND #12: PROCUREMENT MANDATES – The Service Level Agreement Approach vs the ‘Traditional’ ApproachR249.00